Hedge fund registration again raised in Senate
Legislation requiring hedge funds to register with the Securities and Exchange Commission will be reintroduced by the ranking minority member of the Senate Finance Committee.
Legislation requiring hedge funds to register with the Securities and Exchange Commission will be reintroduced by the ranking minority member of the Senate Finance Committee.
“This initiative is one step in helping to make our financial markets more transparent,” Sen. Chuck Grassley, R-Iowa, said in a statement.
“Openness is fundamental to the strength and stability of those markets,” he said in the release.
Many pension holders do not understand their exposure to hedge fund losses because there is no transparency, he said.
“It’s not about fat-cat investors who can afford to lose. It’s about regular workers and their retirement savings,” Mr. Grassley said.
In 2006, the U.S. Court of Appeals for the District of Columbia Circuit overturned an SEC regulation requiring hedge funds to register.
The federal court said the SEC went beyond its legal authority.
“It’s up to Congress to take action and clear the way for the Securities and Exchange Commission to achieve transparency with hedge funds,” Mr. Grassley said.
He introduced similar legislation in 2007 as an amendment to homeland security legislation, but it was not considered by the Senate during debate on the bill.
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